All language subtitles for 9_fodase111asdasdsad

actual drivers of the economy.
So so far we've looked at

very risky at the time. So guys
I hope this clears everything

course. We're going to be
looking in more detail of

around the economy so less
economic activity businesses

of what we know about the
economy. Uh moving on into the

third stage and obviously the
fourth stage of the fundamental

interest rates are increasing,
therefore your currency also

saving lots of people would
rather save in the economy than

can go bankrupt as they can't
pay loans back loans and

policies of how they control
the economy. So we've pretty

But anyways guys I hope you
enjoyed this video and take and

in banks rather than spending
it in the stock market which is

our economic train video in one
of the introductionary videos.

higher return of investment
decrease consumer spending

somewhere where you have the
highest rate of return, usually

obviously they default on these
and then of course in terms of

is, if your economy is
deflationary, that means

just want to clear it up. Now,
the reason why the currency

much been at the breaks of the
economy. If you refer back to

higher investment into into
countries with higher interest

that's done through higher
interest rates, now of course

actually increases in value as
interest rates increases is

increases in value, bonds start
to look attractive due to the

investment you know saving
their money keeping it as cash

currency, your capital
somewhere, you want to look for

because the investment
globally. You start to because

see first of all lower
inflation rates as seen through

currency such as if we're
looking at the Fed and then the

economy of course be would want
that higher return of

spend because the economy is
rigid which leads to a rigid

up. This is pretty much a
summary of everything up to now

rates. I don't think I've
discussed this previously but I

if you've got a pot of money
and you want to invest your

that in a high interest rate
environment the domestic

high interest rates
environments and then where we

that I couldn't find for the
low interest rate environment

borrowing means reduced
investment, lower economic

growth, higher mortgage
interest payments, reduced

start to see deflation occur so
things like increased cost of

increase in value but of course
you you now understand that

the CPI and PPI data. Then your
currency increases in value,

understand how does this affect
imports and exports Now just a

it's not always a good thing
because you've got to

increase return to saving, hot
money flows, you know fallen

brief summary of what actually
tends to happen. You start to

but this is a perfect
explanation of what we see in

it's safe where it's a hedge
against you know a bad economy

housing prices, appreciation in
the exchange rate. Remember

the higher return on investment
due to higher interest rates of

that means is asset purchases
are no longer in no longer in

these mortgages. Next the next
step. Asset purchases are

consumption, also defaults on
them payments as well. Then

I was doing the research I just
found this interesting diagram

and all of their money
somewhere where first of all

the USD would be the point in
question that would actually

and also where they get the
highest rate of return now when

variable interest rates.
Usually they have to default on

sense you know how people
actually take too many loans

course you got to think about
the yields as well you know

they tend to be directly
towards a bond market due to

great thing to research as well
in your spare time. Search

then as soon as interest rates
starts rising because they're

So that means less money supply
rates circulating in their

everything about housing
bubbles. It'll really make

mortgage defaults. This forms
housing bubbles. This is a

where do investors want to
sense all of their investments

place like before and of course
a lot of tapering has happened.

economy and then in terms of
investments around the world

subdued and tapering may have
occurred significantly. So what

are taken out. More housing
market more housing market

the first stage that we talked
about in our fundamental

deflation exports can't be as
competitive globally Now high

so they're not going to be able
to borrow as much therefore

interest rates increases the
cost of borrowing so less loans

their money they're going to
have higher rates of interest

Then you've got government has
rise in borrowing costs. So if

economy. Therefore employment
decreases unemployment rises.

you remember the fact you know
with the bond market and

section where where you get
higher higher amounts of

less economic activity another
thing as well exports cannot be

not many people have the money
to actually spend inside the

economy is very slow down.
Businesses aren't borrowing as

Unemployment could rise. So how
how is that possible? Because

much money. Some businesses
having to close down because

as competitive so this is
really going back to the first

everywhere that the that the
government actually borrows

could rise. Government has rise
in borrowing costs and exports

cannot be competitive. So
there's three points in there.

lower amounts of inflation and
of course deflation. The

where the economy is very slow
down. That means unemployment

the thing is you must
understand with higher with

So interest rates are going to
be high. Now what does that

that we just covered and moving
on to high interest rate.

Yes everyone, welcome to the
next video. So in this one

mean? That's usually a a state
of high amount of deflation

we're moving on from the low
interest rate environment video

I'll see you in the third
section.